Dealers say the currency is likely to see renewed volatility ahead of the RBI's Monetary Policy. The currency has been showing signs of strengthening in the last few trading sessions on robust inflows from foreign funds.

Most analysts expect the RBI to keep interest rates on hold in its policy meet later today and should that happen we might see some weakness in the rupee. The dollar has been strengthening against a basket of currencies in the last few days. Check rupee rates here